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Subject:  Re: 457 plan Date:  7/1/1998  5:43 PM
Author:  TMFPixy Number:  4112 of 88763


<<My wife has a 457 plan at here work (U of Utah), so this affects us too. May I assume that when she leaves the U of U she can defer receipt of her 457 funds until such time as she needs (or wants) it, and does not have to take the income on termination. The other question is that if we move back to CA and then she takes her 457 funds, would she then have Utah income as well as CA income and would we be dealing with a 2 state income tax return for that(those) year(s) ?>>

Her distribution options will depend on the plan documents. Most will allow her to take it in installments over two to fifteen years. At best, she will probably be able to defer those distributions until January 1 of the following year. As to dual state taxation, there's a law against that for retirement plansso she should only be taxed in the current state of residence on receipt.

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